Suppose a perfectly competitive firm faces this situation: P = $15, output = 700, MC = $14, AVC = $10, and ATC = $14. Which statement is correct?
A) The firm is both productive and allocative efficient.
B) The firm is productive efficient but not allocative efficient.
C) The firm is allocative efficient but not productive efficient.
D) The firm is neither allocative efficient nor productive efficient.
Correct Answer:
Verified
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